Imagine waking up, checking your bank account, and realizing your funds are frozen. No warning. No explanation. Just panic. For many Texans, this is how they discover a judgment has been entered against them. If this happens to you, don’t assume it’s the end – know your rights and what steps to take next.
What Causes a Bank Account to Be Frozen?
In most cases, bank accounts are frozen due to a judgment from a lawsuit – usually related to unpaid debts like credit cards, personal loans, or deficiency balances after repossession. Once a creditor obtains a court judgment, they can request a writ of garnishment to freeze your accounts and seize non-exempt funds.
Texas Laws on Bank Garnishment
Texas law protects certain forms of income from garnishment – like wages, Social Security, and retirement income. However, once those funds are deposited into your bank account, they may lose their exempt status if they’re combined with other funds. This is a major reason why many Texans are surprised to find their accounts frozen despite believing their money was safe.
What to Do If Your Bank Account Is Frozen
1. Don’t ignore it.
Time is critical. Once your bank has served the garnishment order, they’re required to freeze the funds immediately – even before you’re notified.
2. Contact an attorney.
A qualified debt defense lawyer can evaluate whether the garnishment was legally executed and whether your funds are exempt. They can also file a motion to release funds if appropriate.
3. Identify exempt funds.
If your frozen account includes exempt income (child support, veteran benefits, retirement distributions and such), you may have a legal right to recover those funds. You’ll need to act fast – usually within a short statutory window.
4. Consider settlement options.
In some cases, negotiating with the creditor to settle the debt or enter into a payment plan may result in the garnishment being lifted.
You Still Have Options
Many clients come to us believing all is lost once their account is frozen. The truth is, with the right legal guidance, you can often recover funds, fight the judgment, or settle the debt for far less than what is owed.
Don’t delay. If your bank account has been frozen, contact Case Law Legal immediately for a free consultation. Let’s help you protect your money – and your peace of mind.
